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The global media and entertainment industry is undergoing a seismic shift, propelled by the rapid evolution of Artificial Intelligence (AI). As per a report by The Business Research Company, the global market for AI in media and entertainment reached $22.46 billion in 2024 and is projected to grow to $70.66 billion by 2029, at an astonishing CAGR of 25.7%. 1India, too, is riding the AI wave. Ernst & Young's AIdea 2025 2 report projects a 15–20% productivity impact on India's media sector by 2030, with GenAI tools streamlining content production, boosting engagement, and enhancing monetization strategies.
The Bright Side: Innovation, Monetisation, and Protection
AI's influence on the media and entertainment industry is both disruptive and promising. From generating art, music and even entire film scripts to powering personalized advertising and virtual experiences, AI is enhancing content creation and consumer experience. A 95 minute romantic drama in the Kannada language titled 'Love You' released in India in April 2025 which did not feature a single human performer. This film marks a new era of creativity in the country and follows close on the heels of the 2024 release of 'Where The Robots Grow' – the world's first AI-generated animated feature film.
Media platforms also leverage AI to analyse user behaviour, helping tailor content to individual tastes, increasing engagement and optimising ad targeting.
Further, advanced algorithms are proving an aid in detecting copyright infringement, identifying pirated content, thus enabling content takedowns swiftly across platforms. In this way AI tools are offering creators a stronger hold on their rights, particularly in the digital environment.
The Dark Side: Misuse, and Dilution of Creativity
The growing integration of AI, however, is not without pitfalls. One perceived constraint is its inability to convey the vagaries of life and nuances of human emotions. The efficiency of AI tools may be appealing from a business sense, but meaningful storytelling is often rooted in human experience and cultural context, which AI tools have not (yet) mastered. Surely machines and software cannot duplicate the human creative urge and impart the meaning of life itself to humanity? And what of the displacement of actual human talent in the face of AI replication tools - it was only two years ago that actors and writers shut down Hollywood with strikes demanding protections from AI. Ultimately, a deal was brokered barring studios from using AI to write or rewrite scripts and forcing writers to use AI, as also requiring disclosure of AI-generated material, and protection for writers' work from being used to train AI.
Simulation of human behaviour has also flagged deep concern. In the U.S., a tragic case emerged recently when a 16‑year‑old Adam Raine died by suicide after prolonged interactions with an AI platform. His parents allege the chatbot validated his suicidal thoughts, discouraged him from seeking help and even aided in drafting the plan. A recent survey by the digital safety non-profit organization, Common Sense Media, found that 72% of teens have used AI companions at least once, with more than half using them a few times a month.3 It emphasizes on the need to design chatbots so they are safer for teens and for people with mental health issues.
Then there are deepfakes. In recent months, the Delhi High Court has repeatedly intervened in cases involving deepfakes and AI-enabled impersonation - granting interim and permanent injunctions to protect the 'personality and publicity rights' of individuals whose likeness, voice or image was used without consent - Aishwarya Rai Bachchan v. Aishwaryaworld.com, Abhishek Bachchan v. The Bollywood Tee Shop, Ankur Warikoo v. John Doe & Ors. among others.
All these instances underscore that legal frameworks must quickly catch up to technological advancements and introduce appropriate regulation wherever necessary. A case in point are the Indian government's draft amendments to the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 to cover 'synthetically generated information', including deepfakes. Additionally, OTT platforms in India are set to feel an impact under its new data protection regime which introduces stricter limits on profiling and targeted advertisements.
Copyright, Fair Use and Ownership
Globally, AI is testing long-standing doctrines of authorship and copyright. In the United States, courts have begun drawing early boundaries: Thomson Reuters v. Ross Intelligence held that wholesale scraping and repurposing of proprietary editorial content for AI training is not fair use, while Bartz v. Anthropic suggested that limited, functional uses of copyrighted material within model outputs may qualify as transformative in specific contexts. At the same time, Kadrey v. Meta underscored that fair-use analysis in the AI setting turns heavily on factors like market substitution and the nature of the copied material, cautioning against broad generalizations and signaling that AI-related copyright doctrine will evolve case by case.
In India, the legal trajectory is just beginning. ANI's lawsuit against OpenAI for alleged unauthorized use of copyrighted news content is set to become a landmark case on AI accountability and fair dealing in data scraping.
Ownership of AI-generated content adds another layer of complexity. U.S. courts, in Thaler v. Perlmutter, have affirmed that works solely created by AI are not copyrightable, emphasizing the requirement of human authorship. However, AI-assisted works - as seen in the case of A Single Piece of American Cheese - are eligible if they involve significant human input. India, too, requires a human author under Section 2(d) of its Copyright Act. The registration and subsequent revocation over RAGHAV, wherein an AI painting tool was listed as a co-author alongside a human, reflects the legal ambiguity in play.
Licensing and Revenue Sharing: Middle Ground
Rising copyright concerns and litigation have spurred industry players to focus on collaboration. Universal Music Group, Warner Music, and Sony Music recently sued AI start-ups Suno and Udio for unauthorised use of copyrighted sound recordings at 'industrial scale' to train generative music models.4 However, instead of escalating court battles, several disputes have shifted into licensing discussions involving fees, equity stakes and usage controls allowing AI firms to legally train on label catalogues.
A similar shift is visible in publishing. AI company Perplexity is exploring revenue-sharing models, offering publishers a share of the earnings from AI-driven content usage.
These developments signal a growing willingness among AI companies and content owners to find mutually beneficial solutions, blending respect for IP with continued innovation.
Looking Forward: Hype or Lasting Change?
Some experts compare the current AI wave to the dot-com bubble - a mix of transformative potential and overhyped expectations. Even Google's Sundar Pichai, in a recent BBC interview, noted that while this is an 'extraordinary time', there are 'elements of irrationality' in today's AI surge. And while venture capital is turning cautious and some generative models appear to be hitting performance plateaus, the structural impact of AI is undeniable. From revolutionizing content creation to redefining legal and ethical norms, AI is far from a passing trend - it is actively architecting a new era of media and entertainment.
The AI wave carries both opportunity and challenge, demanding that industry balance rapid innovation with ethical responsibility, clearer regulation and a firm commitment to human creativity. As courts, governments and creators navigate this evolving landscape, one conclusion stands out: the future of media and entertainment will undoubtedly be AI-augmented - but its legitimacy, trust and cultural value will depend on keeping humans firmly in the driver's seat.
Footnotes
1. https://www.thebusinessresearchcompany.com/report/ai-in-media-and-entertainment-global-market-report
4. https://www.bbc.com/news/articles/ckrrr8yelzvo
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